Lundin Energy announced that its subsidiary Lundin Energy Norway has entered into an agreement with Idemitsu Petroleum Norge (IPN) to acquire interests in a portfolio of licences in the Barents Sea.
The transaction gives Lundin Energy a 10% working interest in the major Wisting oil discovery (licences PL537 and PL537B*) with estimated gross resources of 500 million bbl, scheduled to be one of the next Barents Sea production hubs.
Equinor, the operator of Wisting in the development phase, is targeting a PDO by end 2022, to benefit from the temporary tax incentives established by the Norwegian Government in June 2020.
The transaction also provides Lundin Energy with a further 15% working interest in licences PL609, PL609B and PL609D, increasing the company’s working interest in the operated Alta oil discovery, from 40% to 55%.
The potential to accelerate the development of Alta is being assessed, with the aim to benefit from the temporary tax incentives.
Additionally, Lundin Energy increases its working interests in licences PL609C and PL851, raising the Company’s working interest in the operated Polmak exploration well from 40% to 47.5%.
Polmak is the first of three high impact exploration prospects to be drilled by the company in the Barents Sea during 4Q20, which are targeting gross unrisked prospective resources of over 800 million bbl.
Polmak will be drilled by the West Bollsta semi-submersible drilling rig, with spud expected in early October 2020.
The transaction adds estimated net contingent resources of approximately 70 million boe for a cash consideration of $125 million, and is subject to approval of the Board of Directors of Idemitsu Kosan Co.,Ltd. (the parent company of IPN) and usual Norwegian regulatory approvals. ■
Under an intense surge of arctic air, Friday morning will begin with the coldest temperatures so far this season across much of the central and eastern U.S. with blustery conditions and a piercing wind chill.